What is dividend payout ratio before and after stock split

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Reference no: EM131563449

A firm earns $9.50 per share the stock currently sells for $90.00 and pays a $6.00 dividend per share. The stock is split two for one and then a $3.00 dividend is declared.

a) What should be the new price of the stock?

b) If the firm's earnings do not change what is the dividend payout ratio before and after the stock split?

Reference no: EM131563449

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